Category: Accounting
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Crisis measures in 2022 accounting practice
I was unprepared for the rapid changes in the private practice accounting field that quickly escalated to the largest backlog of work we’ve ever seen. A scan of peer feedback indicates that we are not alone; other private firms report the same current struggle. 2020 and 2021 were difficult but manageable for our practice. 2022…
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Simple overview of tax options for LLCs
If you operate a business as a Limited Liability Company (LLC), the. you have some choice in how to have your business earnings taxed. There are protocols and restrictions that are not covered here in this post. This short post overviews the most common options, advantages and limitations of tax options available to LLCs. Sole…
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Sample accounting services engagement agreement 2022
In our practice, each client service agreement is unique and customized to the specific situation. It helps, however, to have a listing of the best practices based on past experience as the basis for our work agreement. This is a sample only, dated 1/18/2022. Thank you for choosing me to help you with your accounting…
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Best Practices for Setting up an Accounting System for a Charity or Other Nonprofit Organization
There is no single right way or wrong way to set up an accounting system for a nonprofit organization. Every method has its pros and cons. Yet small new nonprofits may find a that simple clear list of best practice recommendations is useful to save time and money and to avoid learning ‘the hard way’.…
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Donation acknowledgment letters from charities
This is the time of year that many smaller charities send donation acknowledgement letters to contributors. IRS requires these letters as documentation of the contributions. It seems that larger charities send these at the time the donation is made while some smaller charities with fewer donor management capabilities wait until year end. This post is…
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Sample Work Plan for tax preparation
This is the beginning of another tax season and I notice already that some independent preparers are struggling with the increasingly messy topic of client communications. As part of my coaching certification program I am now working with more tax accountants on helping them build their business. So this topic came up a few times…
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Audits are expensive, even for small charities!
Update for 2022: Our State of New Jersey recently raised the minimum size requirement for nonprofit audits to $1,000,000 gross receipts. These bullet point comments are meant to introduce the topic of costs associated with financial statement audits of small charities. Financial statement audits are not the only type of audit undertaken by small charities…
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“My accountant disappeared”
Preface: For years industry observers have warned about the aging of existing CPA professionals, the growing portion that were working beyond intended retirement age, the mass exodus of middle level producers at larger firms, and the lack of younger accountants coming into the public accounting industry. Yet none of that predicted the accounting industry crisis…
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My web site updated for 2022
Last night and this morning I reviewed, edited and updated all of the 46 pages on my web site. This does not include the blog posts section that total about 2,000, compiled from various sources since the middle 1990s. But it does include details to address the causes of business model failures we incurred this…
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How bad tax advice tripped millions of investors
“Good tax advice may appear to be expensive, but it’s not as costly as blowing up your IRA” -WSJ What’s the easiest way to lose half of your retirement assets to IRS taxes and penalties? Follow the most popular social media tax and investment advice. Investors who lose tax court cases find that cultural norms…